Cost-cutting affects offshore oil safety up to three years later

Offshore oil safety management is expensive, but failures of oil Sheq are much more expensive.
Offshore oil safety management is expensive, but oil and gas Sheq failures are much more expensive.

Cutting costs impacts on offshore oil safety up to three years later, said the organizers of Offshore West Africa (OWA), planned for June 2017.

The conference will focus on health, safety, security, and environment (HSSE) risks of oil exploration, during the current low crude price regime.

PennWell’s Africa director of operations, Dele Olaoye, said the need to ensure safer work in the oil and gas industry, informed the need to exchange HSSE information.

A section of the exhibition floor will be used for paper presentations on occupational health and safety issues in oil and gas industry.

The organizers want to engage key players, including governments, authorities, operator companies, investors and other participants.”

Offshore oil safety “should continue to be top priority, despite the global low crude oil price.”

Cost-cutting causes incidents up to three years later

According to some consultants, low oil prices cause an increase in incident rates, up to three years after the trend starts.

Any cost savings that affect occupational health and safety implies that the organisation could expect an evil day. The eventual loss usually far outweighs the perceived immediate savings.

Delegates from 40 countries are expected at OWA in 2017, including the USA, Scotland, Angola, Ghana, Nigeria, and the UK.

Olaoye noted that marketing and training were usually the first casualties of pressure on the profit margin.

Retrenching experienced specialists in marketing, health, safety, security, and environment, may also result in a wide range of incidents, up to three years after cost-cutting or restructuring.

“Contractor management deserves attention during a low oil price regime. Negotiating or renegotiating contracts need to be carefully guarded to ensure people’s lives, health, environment, and company assets,“ said Olaoye.

  • Sources: Nigeria Today. Thisdaylive.
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Edmond Furter

Editor at Sheqafrica.com
Edmond Furter is the editor of Sheqafrica.com. He is a freelance technical journalist, and has won six journalism awards. He specialises in industrial, business, and cultural content in web, journal, and book formats.